As the year came to a close on December 31, 2023, Svenska Spel, Sweden’s state-owned gaming operator, disclosed a nearly steady revenue stream at SEK8.03 billion. The figure represents a slight dip in comparison to the preceding year, marking a stable period for the company amidst evolving market challenges. President and CEO Patrick Strand highlighted the achievement, noting that maintaining revenue levels was a positive outcome against the backdrop of wider economic concerns, zero growth in the gaming market, and operational adjustments that included the closure of select Casino Cosmopol locations in Gothenburg and Malmö due to underwhelming profitability.
In a silver lining to the reshuffling of their physical casino properties, Strand emphasized the company’s overall resilience and the growth in other business segments, suggesting a strong strategic position for Svenska Spel moving ahead. “We continue to be a successful business despite the challenges we face in the outside world, which is slowing down growth in the gaming market and increased inflation,” said Strand. True to their forward-looking ethos, he added, “In 2024, we will continue to create sustainable gaming experiences that contribute to a better Sweden.”
Additionally, Svenska Spel is poised for a leadership transformation, with Anna Johnson set to assume the role of CEO. Strand, who currently operates as interim CEO following Patrik Hofbauer’s departure, will persist in his temporary responsibilities until Johnson transitions into the role in June. Strand paid tribute to Hofbauer’s successful tenure and welcomed Johnson enthusiastically.
Strand also extended gratitude to the company’s employees for their dedication over the past year, underpinning the stable results. Delving deeper into fiscal specifics, Svenska Spel’s Tur lottery division was the revenue powerhouse, posting a 0.6% increase at SEK4.92 billion, with the Eurojackpot game boosting sales. The Sport & Casino sector also witnessed a 4.6% surge to SEK2.17 billion, credited to growth in pool betting, online casino offerings, and the company’s revamp of their poker gaming platform.
The Casino Cosmopol and Vegas unit, however, experienced a downturn, with a 12.0% revenue reduction to SEK942 million, pointing to a transition of customers favoring online gaming avenues. The split in net gaming revenue by sales channel showed a 7.2% rise to SEK4.20 billion for online operations. Retail avenues were not as fortunate, downturns being evident in restaurant and bingo hall revenue as well.
While Svenska Spel’s expenses across the board were relatively unchanged in 2023, with external charges slightly decreasing to SEK1.87 billion from SEK1.91 billion in 2022, other notable outlays included direct costs of SEK1.50 billion, gaming operation expenses of SEK1.00 billion, and staff costs at SEK1.22 billion.
Financially, the organization’s pre-tax profit fell by 2.5% to SEK2.45 billion, after which a tax payment of SEK509 million resulted in a net profit of SEK1.94 billion, a slight 2.7% drop from the previous year.
Looking at quarterly performance, Q4 of 2023 saw a modest 2.9% slip in revenue to SEK2.12 billion, with Sport & Casino demonstrating an uptick by 6.9%. In contrast, the Tur segment had reduced revenue by 2.4% to SEK1.35 billion, and Casino Cosmopol & Vegas revenue precipitated by 25.2% due to a decline in visitor numbers.
Despite the fall in quarterly profits which reflected a 31.0% and 31.5% decrease in pre-tax and net profits respectively, Svenska Spel appears focused on a strategic transformation, combining a digital shift with sustainable practices in the gaming industry. This timely approach, paired with new leadership, could herald a refreshed vision that preserves Svenska Spel’s footprint in the industry, while paving the way for further innovation and adaptability in a changing economic landscape.
